Russia's RusAl invests $20 mln in Nigerian aluminum smelter

Russia's RusAl invests $20 mln in Nigerian aluminum smelter

18:47 | 24/ 04/ 2008

MOSCOW, April 24 (RIA Novosti) - Russia's United Company RusAl, the world's largest aluminum producer, said on Thursday it had invested over $20 million in an aluminum smelter in Nigeria.

RusAl acquired a controlling stake in the Aluminum Smelter Company of Nigeria (ALSCON) in February 2007 and launched a large-scale modernization program at the enterprise, which had been idle for eight years. Modernization included the efforts to complete the enterprise's construction and improve existing production technologies.

UC RusAl, which became the world's largest aluminum producer after a March 2007 merger between RusAl, rival Sual and Swiss Glencore's alumina assets, plans to invest about $150 million in the Nigeria facility in the next three years.

The Nigerian smelter is expected to reach its designed capacity of 197,000 metric tons of aluminum annually by late 2010.

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RusAl closes deal to buy Prokhorov's stake in nickel giant
18:02 | 24/ 04/ 2008

MOSCOW, April 24 (RIA Novosti) - Russia's United Company RusAl, the world's largest aluminum producer, said on Thursday it had closed a deal to buy a blocking interest of 25% plus one share in Norilsk Nickel from billionaire Mikhail Prokhorov.

"We are pleased that the deal to acquire 25% plus one share in Norilsk Nickel has been successfully completed. Having become shareholders in one of the world's largest producers of nickel, palladium, copper and platinum, we have laid a good foundation for the development of RusAl as a diversified mining and metals corporation with large growth potential," RusAl said.

Prokhorov and his former business partner Vladimir Potanin, the owner of Interros holding company, were two of the main shareholders of the world's largest nickel producer as of late 2007, holding 28.2% and 25.3% of Norilsk Nickel's shares, respectively. Both businessmen announced plans early in 2007 to split the assets, but eventually failed to agree on the business's division.

In late 2007, Russia's newly created aluminum giant RusAl, controlled by Oleg Deripaska, ranked Russia's richest man by Forbes, announced that it had reached an agreement with Prokhorov's Onexim Group on buying Prokhorov's blocking stake of 25% plus one share in Norilsk Nickel. The announcement came after Interros refused to buy Prokhorov's blocking interest.

Under the terms of the deal, Onexim will receive 14% of RusAl's shares and cash while an Onexim representative will sit on the RusAl board of directors. The stakes of other shareholders in RusAl will change proportionately, the aluminum giant said in a statement.